RBI may increase repo rate by as much as 50 bps

1 Aug 2022 , 11:57 AM

According to the majority of market experts surveyed by ET in a survey of 22 participants, the Reserve Bank of India is likely to increase its key policy rate by up to 50 basis points this week as Europe’s unexpected decision to increase the cost of funds for the first time in a decade highlights the stickiness of a global price spiral that prompted the second disproportionate increase in US benchmark rates in as many months. 0.01 percent is represented as one basis point.

More than half of the respondents, who included bankers, traders, analysts, and fund managers, also expected RBI to go from an “accommodative” to a “neutral” attitude. Yes, Mint Street is already concentrating on the removal of financial accommodations.

The poll revealed that the RBI’s Monetary Policy Committee (MPC) would prefer to move in lockstep with the rest of the world’s central banks in the short term to prevent the rupee from falling sharply, trying to reduce the risks of disproportionate fund outflows and imported inflation even as domestic prices have recently begun to ease.